Cyprus Foreign Interest Company — CFI Lawyers
Register a Cyprus Foreign Interest Company in 10 business days under the Business Support Centre procedure, then onboard your non-EU staff and their families under the Aliens and Immigration Law.
Investment recency. Bank SWIFT confirmation must be dated within six months prior to your application. The €200,000 is invested capital that stays in your company, not a fee paid to government.
What is a Cyprus Foreign Interest Company?
Under the Council of Ministers Decision of 15 October 2021 (as amended on 12 December 2022), a Cyprus private company qualifies as a Foreign Interest Company where the majority of its shares are held by third-country nationals, or where foreign participation is worth at least €200,000.
A CFI is a Cyprus company that the Business Support Centre has classified as foreign-owned for immigration purposes. That classification unlocks fast-track residence and employment permits for the company’s non-EU staff and their families through the Civil Registry and Migration Department.
The company registers, not the individual. The vehicle is a regular Cyprus private company limited by shares under Companies Law (Cap. 113). The classification just sits on top.
A note on terminology: the Business Support Centre absorbed the older Business Facilitation Unit on 26 May 2025. The procedure, the eleven-document Annex, and the ten business-day SLA carried over. Older articles you may have read still call it “the BFU”; the body and the rules are the same.
Who qualifies: eligibility paths for a CFI
A Cyprus company can qualify as a Foreign Interest Company through one of nine recognised paths. The two-prong default threshold: either more than 50% of the shares are held by third-country nationals, or, where foreign shareholding is 50% or less, foreign participation is worth at least €200,000.
Other eligibility paths
Majority non-EU shareholding (>50% of shares held by third-country nationals).
Minority foreign shareholding with at least €200,000 nominal capital.
Cypriot shipping companies, high-tech / innovation companies (with R&D criteria), and pharmaceutical / biogenetics / biotechnology companies with operating licences.
Public companies listed on a recognised stock exchange, international activities companies (former offshores), and naturalised Cypriots via the economic-criteria route qualify under their own evidence rules.
Setup requirements checklist (Annex I, eleven documents)
Here is the full setup requirements checklist for a Cyprus Foreign Interest Company. Annex I of the Business Support Centre Registration Procedure (in force from 26 May 2025, replacing the BFU procedure) lists eleven mandatory supporting documents, anchored in the Council of Ministers Decision of 12 December 2022.
Certificate of Incorporation from the Department of Registrar of Companies and Intellectual Property (DRCIP), plus the Memorandum and Articles of Association filed under Companies Law (Cap. 113).
Certificates of shareholders, directors, and registered office from DRCIP.
Up-to-date Ultimate Beneficial Owner declaration with a clear ownership-chain diagram to the natural person, plus valid passport copies for every UBO and every director.
Tax Identification Number (TIN) for the company, issued by the Cyprus Tax Department.
Lease or title deed for business premises, physically separate from any residential address. Stamped lease required for any rental agreement valued at €5,000 per year or more (Stamp Duty Law).
Profile of the company’s activities, with evidence of commercial substance in Cyprus.
Most recent Audited Financial Statements, if the company has trading history.
Bank SWIFT confirmation or equivalent proof of the €200,000 investment, dated within six months prior to your application.
Investment recency. Investment evidence must be dated within six months prior to your application. A SWIFT confirmation from eight months ago triggers a resubmission cycle of two to four weeks.
Premises separation. Office premises must be physically separate from any residential address. Rental agreements worth €5,000 per year or more must be duly stamped, otherwise the BSC will not accept the lease as evidence. We coordinate the eleven-document Annex with your auditor and company secretary.
Investment, salaries, fees: what €200,000 actually covers
There is no statutory minimum share capital under Companies Law (Cap. 113), but a Cyprus Foreign Interest Company must demonstrate €200,000 of investment in the Republic. The investment is not a fee. It is capital that stays in your company or is spent on Cyprus office space, equipment, or operations.
Minimum investment in Cyprus
Invested capital (not a fee)
Stays in the company
Eligible investment vehicles: cash deposit in a Central-Bank-licensed Cyprus bank (SWIFT + bank statement), office space purchase (title deed + invoice), equipment purchase (invoices + bank confirmation), or nominal capital increase (DRCIP capital-increase filings + SWIFT). All evidence must be dated within six months prior to application.
Why a CFI? Benefits beyond residency
Since 1 January 2026, Cyprus levies a 15% corporate income tax under Income Tax Law N.118(I)/2002, as amended by the Cyprus Tax Reform 2026 (OECD Pillar Two alignment), preserving treaty access while replacing the legacy 12.5% rate. The CFI framework, established by the Council of Ministers Decision of 15 October 2021 and operated under the Aliens and Immigration Law (Cap. 105), layers fast-track work and residence permits for non-EU staff on top of that tax position.
Five benefits CFI status actually delivers: fast-track work and residence permits for non-EU staff and families; direct EU single-market access; 15% corporate tax with 60+ double tax treaties; 50% personal income tax exemption (Article 8(23A)) for employees earning over €55,000; and non-dom status for shareholders and employees who become Cyprus tax residents.
Fast-track work and residence permits for non-EU staff and families. No labour-market test where the gross monthly salary is €2,500 or more.
Direct EU single-market access. Your Cyprus company can trade and provide services across the EU and EEA from day one.
15% corporate tax + 60+ double tax treaties. Cyprus moved from 12.5% to 15% on 1 January 2026 to align with OECD Pillar Two.
50% personal income tax exemption for non-EU employees earning over €55,000/yr (Article 8(23A) of Income Tax Law N.118(I)/2002), available for up to 17 years from first Cyprus employment.
Non-dom status for shareholders and employees who become Cyprus tax residents. Dividends, interest, and rental income are exempt from the Special Defence Contribution for up to 17 years.
60+ double tax treaty network, including treaties with the United States, the United Kingdom, India, South Africa, and most EU member states.
Cross-practice planning. Non-dom for shareholders, Article 8(23A) for senior TCN hires, and Cap. 105 family-reunification combine into a single mandate handled in-house.
How CFI setup works: process and timeline
Four sequential steps from idea to first work permit. 6 to 10 weeks end to end, assuming clean documents. The Business Support Centre publishes a 10 business-day SLA from a duly-submitted e-application.
Week 1-2 — Incorporate. We draft your Memorandum and Articles of Association under Cap. 113, file HE1 with DRCIP, and obtain the Certificate of Incorporation. 5 to 10 working days.
Week 3-4 — Bank account + transfer €200,000. Open the company account with a Central-Bank-licensed Cyprus institution. KYC typically takes 2 to 4 weeks for international applicants.
Week 5-6 — Submit Foreign Interests e-Application. We file with the BSC, including the full eleven-document Annex I. The BSC reviews within 10 business days.
Week 7-10 — CRMD work and residence permits. With CFI status confirmed, we file employment and residence permit applications for your non-EU staff under Cap. 105. The CRMD typically issues permits within 4 to 6 weeks.
End-to-end timing: 6 to 10 weeks from first eligibility call to first non-EU work permit, assuming clean documents and an investor-ready bank file.
The most common bottleneck is bank-account KYC, not the BSC. We sequence the bank engagement to overlap with steps 01 and 03.
Document hygiene matters. A missing apostille, an unstamped €6,000/year lease, or a SWIFT from seven months ago all trigger the same BSC response: resubmission.
Each resubmission cycle adds 2 to 4 weeks. Clean documents and an investor-ready bank file shorten the overall cycle.
Steps 01 to 03 can be coordinated remotely. The CRMD residence-card pickup at step 04 may require in-person attendance, depending on consulate options.
Our Team
At Koufettas Law Office, our strength lies in our people. Our dedicated team of legal professionals combines expertise, integrity, and commitment to deliver exceptional results for our clients.
Work permits for non-EU staff and their families
Under the Aliens and Immigration Law (Cap. 105) and the BFU/BSC Strategy in force since 2 January 2022, a Cyprus Foreign Interest Company may employ third-country nationals at the Highly Paid Employment level (gross monthly salary of €2,500 or more) without a labour-market test.
Five recurring obligations
Highly Paid Employment: non-EU staff earning €2,500/month gross or more. No labour-market test. No quota.
Support Level: non-EU staff earning below €2,500/month. Labour-market test required, administered by the Department of Labour.
Grandfathered €2,000 salaries: existing BCS Key Personnel earning €2,000+/month may renew with the same employer at the same level until 31 December 2026.
Family reunification under Cap. 105: spouses and minor children obtain residence permits; a spouse with own €2,500+/month Cypriot job has free labour-market access from day one.
Absence rule: CRMD circulars indicate periods exceeding 3 consecutive months may trigger permit cancellation. Confirm directly with the CRMD for any specific case.
Ongoing compliance after CFI registration
After CFI registration, your company remains subject to Companies Law (Cap. 113) reporting, the 70:30 EU-to-non-EU staff-mix obligation (assessed for new hires from 2 January 2027), and, from 2 April 2026, the Foreign Direct Investment Screening framework under Law 194(I)/2025.
Five most common refusal triggers
Annual return + Audited Financial Statements filed with DRCIP. Standard Cap. 113 cycle. Most Cypriot limited companies require audit; only dormant companies below thresholds are exempt.
70:30 staff-mix discipline. Companies commit to 30% Cypriot-or-EU staff share within 5 years of operating in Cyprus. From 2 January 2027, the BSC assesses compliance for new hires.
Tax filings and 15% corporate income tax (since 1 January 2026). Article 8(23A) personal income tax exemption can be applied for qualifying TCN employees.
FDI Screening notification (from 2 April 2026). Law 194(I)/2025 applies where a foreign investor acquires 25%+ or decisive influence in a Strategically Important Enterprise valued at €2 million or more.
UBO register updates. Any change in the ownership chain must be reflected in the DRCIP UBO register.
FDI penalty stack: administrative fines of up to €100,000 (non-notification), up to €500,000 (false or misleading information), and up to €1,000,000 (non-compliance with imposed conditions). Written into the statute as a graduated stack.
Why Koufettas Law
Koufettas Law is a Cyprus-qualified boutique firm. We have walked clients through every step of the CFI process, from the first eligibility call to the first non-EU hire, and on to the second, third, and tenth. The firm covers corporate, immigration, real estate, tax, and private-client work in English and Greek.
We provide a written quote after a 20-minute eligibility call. The quote is itemised: company incorporation, BSC submission, CRMD permits, and post-registration compliance are priced as separate line items. No outcome guarantees. No automatic engagement.
What founders ask before engaging
Both are private companies limited by shares under Companies Law (Cap. 113). The legal vehicle is the same. CFI status is an administrative classification, granted by the Business Support Centre, that sits on top of the company. It unlocks fast-track residence and employment permits for the company’s non-EU staff. To qualify, the company must either have majority non-EU shareholding or a foreign minority shareholding worth at least €200,000, and the ultimate beneficial owner must invest €200,000 in the Republic.
The Business Support Centre publishes a 10 business-day SLA for CFI registration once the e-application and the full eleven-document Annex I are submitted. End to end, from incorporating the Cyprus company to receiving the first non-EU work permit, typical timelines are six to ten weeks. The most common bottleneck is bank-account KYC, not the BSC.
Cyprus Companies Law (Cap. 113) does not impose a statutory residency requirement on directors. For tax-residency purposes, however, your Cyprus company needs to satisfy the “management and control” test, which in practice means majority Cypriot-resident director(s). Without that, the company is not Cyprus tax-resident, and you cannot benefit from the 15% corporate tax rate, the treaty network, or non-dom planning for shareholders.
There are five separate cost lines, and they are not all fees. The €200,000 investment is invested capital that stays in your company, not a fee. DRCIP company incorporation fees are statutory and typically fall in the €350 to €500 range. The BSC charges no separate registration fee. Bank-account opening varies by bank. Attorney fees are scoped by mandate; we provide a written quote after a 20-minute eligibility call.
There is no legal requirement to retain a lawyer. The Annex I package, however, has eleven document categories with strict formal rules: apostilled passports, stamped leases for €5,000-plus rentals, six-month investment recency, an Audited Financial Statements pack, and a clean UBO chain to the ultimate natural person. From 2 April 2026, Law 194(I)/2025 layers FDI screening on top of strategic-sector acquisitions. Each gap triggers a resubmission cycle of two to four weeks. A Cyprus-qualified lawyer reduces rejection risk.
Law 194(I)/2025 applies from 2 April 2026 only where a foreign investor acquires 25% or more (or decisive influence) in a Strategically Important Enterprise with investment value of €2 million or more. Strategic sectors include critical infrastructure, energy, transport, defence, data, health, banking, and media. A new CFI in a non-strategic sector and below the €2 million threshold is generally outside the scope of the regime.
Yes. Once your CFI is registered and your non-EU employees have residence permits, they may also apply for Cyprus long-term residence after five lawful years (Council Directive 2003/109/EC, transposed into Cyprus law). Each long-term-residence track is reviewed individually by the CRMD on its own evidence. We sequence the long-term residency files as separate engagements where the timing makes sense.
Frequently asked questions
Short, sourced answers to the questions clients ask most, each on its own page.
What is a Cyprus Foreign Interest Company (CFI)?How do I register a company in Cyprus?How much does it cost to form a company in Cyprus?Browse all Corporate & Commercial FAQs
